Is It Time to Buy a House?

Friday, March 7, 2014

Many home buyers rush into the process, not knowing that the key to saving the most out of their purchase is to wait for the perfect opportunity. Other people who are aware of this fact, on the other hand, don’t exactly know how to identify an ideal opportunity when it does present itself. Here are some tips that can help you determine the right time to buy your new home: 

Ideal Down Payment Amount 

Lenders favor prospective borrowers who can offer them a substantial down payment amount – this simply helps build their trust in your ability to pay them back. The ideal amount should be about 20 percent of the gross price of the house you’re about to buy, so wait until you can afford to pay this amount upfront. 

Housing Market 

How is the real estate market in your area doing in terms of the property prices? Answering this question allows you to know if you should wait until a much lower pricing rate comes, or if you should take the leap as soon as you can and get your dream house. 

Credit Rating 

 Look into your credit reports to know if there’s anything that might be considered a red flag when prospective lenders pull up your records. If you know of ways to improve your score before you find a lender, then do them first. You might also want to pay off some of your other debts in the process.

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